RBI HAS INCREASED THE RATE OF INTEREST ON SAVING ACCOUNT

Good news for all the saving account holder. Reserve bank of India has increased the rate of interest on the saving account. Rate of interest on all the banks saving account was 3.5% per annum has increased to 4% per annum. This will increase the interest amount to the account of saving holder. Earlier RBI also gave the facility of interest on saving account on daily basis and not on quarterly basis. Full notification is as under.

RBI/2010-11/510
UBD.BPD.(PCB)CIR No.45/13.01.00/2010-11

May 3, 2011

The Chief Executive Officers
All Primary (Urban) Co-operative Banks

Dear Sir,

Interest Rates on Deposits

Please refer to our Directive No.UBD.DC.102/V.1-86/87 dated June 25, 1987 on the captioned subject as amended from time to time.

2. It has since been decided to increase the interest rate on domestic and ordinary Non-Resident savings deposits as well as savings deposits under Non-Resident (External) Accounts Scheme by 0.5 percentage point from 3.5 per cent to 4.0 per cent per annum with immediate effect.

3. All other instructions issued from time to time in this regard will remain unchanged.

4. An amending Directive No.UBD.BPD.DIR. No 3/13.01.00/2010-11 dated May 3, 2011 is enclosed.

5. Please acknowledge receipt of this circular to the Regional Office concerned.

Yours faithfully

(Uma Shankar)
Chief General Manager

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